Burnham launches Labour leadership campaign with housing on the agenda

Andy Burnham has launched his campaign to become Labour leader, and thus Prime Minister, setting out plans for a major council house building programme, greater devolution and increased regional investment as part of a wider vision to reform how the UK is governed.

Speaking at the People’s History Museum in Manchester, Burnham argued that the collaborative approach developed during his nine years as Mayor of Greater Manchester should become the model for national government. He said economic growth would be driven by transferring greater powers from Whitehall to local areas, enabling regions to take more control over housing, regeneration, infrastructure and industrial strategy.

Among the proposals most relevant to construction was a commitment to deliver what Burnham described as the biggest council house building programme since the post-war period. He also proposed establishing a ‘Number 10 North’ in Manchester to coordinate a long-term economic strategy, alongside greater public investment in regeneration, stronger regional industrial clusters, enhanced social value in public procurement and increased support for local authorities.

Burnham argued that the UK’s highly centralised model of government was holding back growth and that empowering local areas would allow housing, infrastructure and regeneration projects to be delivered more effectively. He also called for greater public control of essential services including transport and for a renewed focus on technical education and apprenticeships to support economic renewal.

Responding to the speech, Dr David Crosthwaite, chief economist at BCIS, said: ‘Andy Burnham’s commitment to a major council house building programme was perhaps the clearest proposal for the construction industry. However, the government is already working towards an ambitious target of delivering 1.5 million new homes during this Parliament, and recent figures show England remains well behind the pace required to achieve that ambition. In his speech, Burnham set out what he wants to build, but not who will build it, how it will be funded, or what would enable a significantly faster rate of delivery than the industry is currently achieving.

‘More broadly, his speech was stronger on changing how decisions are made than on creating the conditions that encourage construction investment. Greater devolution may help local authorities bring forward projects that better reflect regional priorities, but additional powers alone do not drive construction activity.

‘Projects only move forward when developers, investors and public sector clients have the confidence and resources to commit to them, which depends not only on governance structures, but also on funding, viability and the cost environment facing the sector.

‘Notably absent was any acknowledgement of the near-term cost pressures facing businesses. Labour costs remain the primary driver of construction project costs, and the employer National Insurance increases introduced by the current government have added to the burden on supply chains.

‘The construction industry will be watching to see whether Burnham’s leadership pitch produces bold new thinking or simply repackages existing commitments.”

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